Eric Pickles, communities secretary has announced that local councils could potentially double the amount that they can legally invest from their pension funds. This would allow them pour it directly into infrastructure to support new home building.
Under the current pension fund rules, local councils are restricted in the amount that they can invest through partnership arrangements, in order to give tax payers long-term protection.
“By lifting the restrictions controlling local pension investments, councils could pump a further £22 billion directly into job creating infrastructure that will boost our economy,” said Pickles. “This is potentially a huge development and investment opportunity we simply cannot afford to ignore that also allows us to maintain long term value for money for the taxpayer.”
The Pension proposal is being suggested as part of the Department for Communities and Local Government’s (DCLG) consultation – Local Government Pension Scheme: Investment in Partnerships and runs until December 18th 2012.